The Ghana Revenue Authority (GRA) will soon expand the implementation of the Tax Stamp Policy to cover other manufactured and imported goods like textiles and pharmaceuticals.
Technical advisor to the GRA’s Commissioner, Akwasi Yankyera, said the move would take effect early next year.
Speaking at the Fourth Quarter edition of the Breakfast Meeting series organised by the Ghana Investment Promotion Centre (GIPC), Mr. Yankyera explained that the tax stamp policy was initiated because considerable revenue had been lost through illicit trade.
He said over the years illegal operators smuggled tobacco, cigarettes, spirits and other alcoholic beverages into the country and engaged in the sale of counterfeited products.
“The under-declaration of quantities of these goods – both the imported and locally produced – has led to significant loss of revenue,” he added.
The Technical Advisor to the GRA Commissioner further explained that goods in transit, particularly, cigarettes were often diverted or smuggled back into the country and sold on the market, making it difficult for the Authority to detect.
“These illegal activities cause significant revenue loss to government and also put legitimate brand owners and businesses at a competitive disadvantage,” he added.
He, therefore, stated that the use of digital tax stamps on selected excisable products, such as cigarettes and alcoholic beverages had been identified as an effective means of accounting for all goods, as well as generating more revenue for the state.
He also observed that GRA may in future review the free distribution of the tax stamps to businesses.
“The Tax Stamp is not a new tax and we are committed to ensuring that the policy stays,” he opined.
President of the Association of Ghana Industries (AGI), Seth Twum-Akwaboah, expressed satisfaction with the implementation of the policy.
He said although the Authority did not do extensive consultation with industry players, the post implementation activities had been very engaging.
He, however, urged the government not to review its decision of giving the tax stamps freely to business operators, saying, “It will be an additional cost to business and make cost of production high.”
GRA, as part of measures to increase compliance in the collection of Excise, launched the Tax Stamp Policy in accordance with the Excise Stamp Act, 2013 (Act 873).
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